BRE Properties Inc. said Tuesday it agreed to buy the assets and western U.S. operations of closely held Trammell Crow Residential Co. for about $600 million.
The deal, which is expected to close in November, gives BRE, a San Francisco-based apartment real-estate investment trust, a total capitalization of $1.7 billion.As part of the deal, BRE will buy 7,478 apartment units in nine cities in California, Arizona, Utah, Colorado and New Mexico. Once the purchase is completed, BRE will have 21,000 apartment units in the West and Southwest, making it a dominant player in those regions.
BRE's move is another indication of consolidation within the residential real-estate investment industry. In addition to buying Dallas-based Trammell Crow's apartment units, BRE will also be acquiring the company's development and construction operations.